The Application of Supply Chain Management in Metaverse Technologies: A Sustainable and Resilient View

1. Introduction

Supply chain management (SCM) is an essential role in the modern business and it determines the efficiency, sustainability and customer satisfaction. According to Ibrahim and Hamid (2014), supply chain refers to a joint system of a variety of firms, individuals, stakeholders, processes, information, and physical resources involved in production and distribution of different goods or services to the final client or consumer. The supply chain network comprises numerous crucial players, but the most significant are those suppliers, manufacturers, distributors, retailers, and, in the end, consumer, who is the most central stakeholder in the entire supply chain because he or she is the driver of the entire supply chain [1]. A small fluctuation at the customer level can result in significant disruption at the topmost level of the supply chain network [2]. This phenomenon is known as the bullwhip effect, and SCM plays an important role in limiting its influence.

The notion of SCM began in the 1980s and has since expanded to become an essential component of business operations [3,4] are of the opinion that SCM is a methodical way of controlling and managing the flow of products, services, data and money between the manufacturing location and the final consumer or customer. Due to the unmatched volatility and uncertainty in businesses currently experienced in the global arena, the significance of SCM becomes even more evident. Two important elements in this framework are resilience and sustainability since they make sure that firms maintain continuity and sustainable practices in their operations resulting to long term success and stability of the firms [5]. Figure 1(a) shows the main challenges that the global supply chains are exposed to in regards to resilience and sustainability.

The emerging predicaments of global supply chain networks have introduced the necessity of considering resilience and sustainability as part of supply chain practices. According to [6], resilience in supply chains refers to the ability to anticipate, prepare, respond, and recover normal operations in the wake of a disruption or an interruption. These are various disruptions and interruptions that may arise due to various factors including natural calamities, pandemics and economic instability and manufacturing hiccups that may include delays, shortages and machine failures. According to [7], sustainability in SCM is the systematic, deliberate, and transparent integration of societal, environmental, and economic goals into supply chain operations. These goals are usually referred to as the “triple bottom line” (TBL) or the “three pillars of sustainability” [8]. A resilient and sustainable supply chain offers several benefits, which are depicted in Figure 1b. Any technological advancement in supply chain practices carries the potential to lift or empower all other sectors of the economy. Metaverse technologies have the potential to help businesses improve and futureproof their supply chain practices.

Metaverse can be described as an innovative form of online interaction that unites the actual and virtual worlds, thus allowing users to interact in real-time within a unified computer-generated environment without any geographical boundaries [9,10]. The term metaverse was originally coined by Neal Stephenson in his 1992 book, Snow Crash. Previously, the term metaverse was not that prominent among the masses; it has only gained momentum in recent years because of platforms like Fortnite and the rebranding of Facebook to meta [11]. Metaverse platforms have a vast potential and this has made companies such as Meta, Microsoft, and Epic Games invest heavily in them. The metaverse platform gives users not only a chance of having immersive experiences but also enables them to develop avatars, interact, play games, visit events or exposition, and conduct business in a virtual collaborative setting [12,13]. The COVID-19 crisis increased the demand and rate of development of metaverse technologies in various sectors of industries. Because of the governmental restrictions, most of the world population were at home during the pandemic, therefore, people started to check new online sources where they could work, study, and communicate remotely. The move to online platforms and the necessity of immersive experiences boosted the development of metaverse platforms at the expense of the traditional communication systems. By encouraging innovative methods of communicating and collaborating with individuals and companies, metaverse platforms have the potential to make them feel trusted [14]. Figure 2. represents how metaverse has been given a lot of focus as a revolutionary platform in a number of industries.

The metaverse is useful in building online manufacturing plants that enhance supply chain resiliency through real-time visibility. It provides virtual learning environments that facilitate immersion, learning and retention. It assists telemedicine, virtual rehabilitation, and mental health therapy in the healthcare sector. The metaverse also favors virtual currency, blockchain transactions, and the investment of digital assets that allow users to buy, sell and rent virtual space to advertise and host events as well. Metaverse assists in enhancement of customer interaction in the virtual marketplaces. It also provides platforms where artists and cultural institutions can manage their work digitally by enabling them to store and showcase their work.

This study aims to provide a broad summary of different new metaverse technologies and their most significant advantages when implemented in the supply chain activities. The paper will also aim at analyzing and classifying the identified technology in the metaverse to determine the most influential ones, which do not only enhance resilience but also offer contributions to long-term development and enhance the long-life of the current systems. The potential application of this research is in the prioritization of investments in technologies that will result in a more sustainable and ecologically friendly metaverse infrastructure. It will also encourage best practices and sustainability, and innovation would bend towards enhanced solutions, which would yield the performance and environmental responsibility equilibrium. Lastly, this rating creates a stronger digital ecosystem that has the potential to grow over the long term as well as adhere to global sustainability standards.

In section 1, the author outlines the supply chain management in general, and then delves into the metaverse and its importance in various areas of the economy. Section 2 contains a table containing the major literature reviews under investigation, which are the motivation behind this research. It consists of a number of researches on the effect of metaverse on SCM. Section 3 classifies and offers a profound understanding of different emerging metaverse technologies and their main advantages in the implementation into supply chain practices. Section 4 outlines a detailed fuzzy TOPSIS methodology to prioritize and rank the metaverse technologies. Section 5 continues with the results and discussions, and lastly, Section 6 provides a detailed conclusion with the future research direction.

2. Literature Review

The key goals of SCM are depicted in Figure 3. Industry practitioners and researchers are particularly concerned with the integration of emerging technologies into supply chain practices to have a resilient and sustainable supply chain network [15]. The metaverse has piqued the interest of the supply chain and the attention of commercial communities because of its ability to convert the conventional supply chain into one that is resilient and sustainable [16]. Metaverse technologies offer an extensive foundation for digitally coordinating the entire supply chain network [17]. Table 1 highlights some of the key literature reviews that drew the authors’ attention to conduct the research.

Introducing metaverse technologies into SCM has a great potential of increasing resilience, sustainability, and collaboration. Through VR, AR, AI and digital twins, companies will have the ability to simulate processes, optimise their logistics, and enhance real-time decisions.

Table 1. Literature review.

Author	Key focuses	Research gaps.
[18]	Investigates the transformational possibilities of integrating AI and metaverse technologies into SCM.	Lack of extensive research addressing how to take advantage of advanced emerging technologies.
[19]	Analyzes the relationship between the metaverse and sustainability.	Lack of comprehensive studies that clearly define the link between the metaverse and sustainability.
[20]	Examines the influence of metaverse technologies on sustainable advertising and SCM.	Lack of a holistic vision of metaverse technologies, digital transformation, and sustainability in the context of SCM.
[21]	Explores how metaverse technologies can influence marketing practices and consumer behavior.	Insufficient exploration of different emerging metaverse technologies and their impact on different sectors.
[22]	Investigates the metaverse’s role in boosting communication and collaboration in a supply chain network.	Lack of extensive research that studies the potential use of metaverse technologies in enhancing the resilience of supply chain networks, particularly in the context of manufacturers.
[23]	Examine the metaverse’s sustainability challenges and implications for the transition to Industry. 5.0.	Insufficient understanding of how various supply chain stakeholders perceive the changes and benefits associated with metaverse technologies.
[24]	Explore the implications of the metaverse platform on SCOM.	Inadequate investigation of performance indicators that highlight distinctive features of the metaverse, like: Virtual customer satisfaction levels Digital sustainability and resilience
[15,25]	Investigate the metaverse platform’s ability to design a robust and sustainable supply chain network.	Lack of comprehensive studies that explore how integration of VR and metaverse technologies can foster resilience and sustainability within supply chain networks.
[26]	Analyze the relationship between the metaverse and the strength of the supply chain, with special focus on the way in which sensory input allows building a stronger trust and collaboration between the participants.	Absence of empirical research on how the metaverse, supply chain resilience, and sensory input are directly related.
[27]	Investigate the integration of metaverse technologies into supply chain practices.	Lack of exploration on how metaverse technologies can improve resilience within supply chain networks.

Table 1. Literature review.

Author	Key focuses	Research gaps.
[18]	Investigates the transformational possibilities of integrating AI and metaverse technologies into SCM.	Lack of extensive research addressing how to take advantage of advanced emerging technologies.
[19]	Analyzes the relationship between the metaverse and sustainability.	Lack of comprehensive studies that clearly define the link between the metaverse and sustainability.
[20]	Examines the influence of metaverse technologies on sustainable advertising and SCM.	Lack of a holistic vision of metaverse technologies, digital transformation, and sustainability in the context of SCM.
[21]	Explores how metaverse technologies can influence marketing practices and consumer behavior.	Insufficient exploration of different emerging metaverse technologies and their impact on different sectors.
[22]	Investigates the metaverse’s role in boosting communication and collaboration in a supply chain network.	Lack of extensive research that studies the potential use of metaverse technologies in enhancing the resilience of supply chain networks, particularly in the context of manufacturers.
[23]	Examine the metaverse’s sustainability challenges and implications for the transition to Industry. 5.0.	Insufficient understanding of how various supply chain stakeholders perceive the changes and benefits associated with metaverse technologies.
[24]	Explore the implications of the metaverse platform on SCOM.	Inadequate investigation of performance indicators that highlight distinctive features of the metaverse, like: Virtual customer satisfaction levels Digital sustainability and resilience
[15,25]	Investigate the metaverse platform’s ability to design a robust and sustainable supply chain network.	Lack of comprehensive studies that explore how integration of VR and metaverse technologies can foster resilience and sustainability within supply chain networks.
[26]	Analyze the relationship between the metaverse and the strength of the supply chain, with special focus on the way in which sensory input allows building a stronger trust and collaboration between the participants.	Absence of empirical research on how the metaverse, supply chain resilience, and sensory input are directly related.
[27]	Investigate the integration of metaverse technologies into supply chain practices.	Lack of exploration on how metaverse technologies can improve resilience within supply chain networks.

3. Emerging Metaverse Technologies

This section may be divided by subheadings. It should provide a concise and precise description of the experimental results, their interpretation, as well as the experimental conclusions that can be drawn.

The new digital technologies that have just emerged can significantly assist the traditional OEMs to provide the best value to their customers. With the growing business size, the supply chain is becoming increasingly complex and more interdependent hence there is a need to integrate these digital technologies into the supply chain practices to become more efficient, visible and innovative. The metaverse helps to fill this gap as it is a critical trigger in the development of supply chains networks to compete in this dynamic business environment [28]. Following paragraph is focusing different emerging metaverse technologies, and it gives specific insight into these technologies.

Artificial Intelligence (AI) can be regarded as a key element in the operation and design of metaverse platforms. [29] emphasize that AI is important to facilitate the creation of intelligent virtual environments, and [30] underlines that AI algorithms assist in the creation of human-like interaction with virtual agents and the real-time decision-making process. [31,32] describe that AI consists of various sub-technologies, including machine learning (ML), which is used to improve the experience of users and enhance their security; deep learning (DL), which can be used to handle more complicated tasks, image recognition, and sentiment analysis; reinforcement learning (RL), which is used to streamline the process of making decisions; natural language processing (NLP), which can be used to facilitate real-world communication; and machine vision and computer vision, which can be used to.

The networking technologies are the base to exchange data and real-time communication between the users and devices within the metaverse [33]. Internet of Things (IoT) is a network of sensors and intelligent objects which collect, share, and analyze real-time information in the digital space [34]. The heterogeneous Networks (HetNets) incorporate the use of various network types including microcells and small cells in order to improve service delivery [35]. Software-Defined Networking (SDN) is used to support the control of the network and the dynamism of resources allocation by isolating the control and data planes [36]. Besides, SAGIN offers a multi-layered network architecture that combines a satellite, aerial, ground, and sea network to guarantee connectivity worldwide [33].

Communication technologies are also critical in facilitating interaction and exchange of information within virtual environments and high-speed connection, ultra-low latency, and reliable communication, which is indispensable in the experience of immersive metaverse [37]. According to [38], 6G has the potential to add to the bridge between the physical and digital world. Relying on quantum states, e.g., on superposition, entanglement, quantum communication ensures a very high level of data security and efficiency in data transmission [39].

The metaverse is built with computing technologies to aid data processing, storage, and transmission. Spatial computing enables users to work inside three-dimensional spaces but superimpose digital data on the real-world [40]. Cloud computing provides the enormous computing ability and storage to support the extensive amount of metaverse information [41]. Edge computing is performed on the data that is much closer to the user, minimizing latency and reliance on the centralized servers [42]. Fog computing is an expansion of this model, in which communication is spread between the edge devices and the cloud system, so that data is processed efficiently at close proximity to the end users [43].

The technologies related to cybersecurity are crucial to defend users, data, and virtual environments against cyber threats. VPNs increase the degree of protection by encrypting the traffic over the internet and hiding the IP address of the users [44]. Identity and Access Management (IAM) is used to make sure that only authorized users can get access to given metaverse services [45]. Encryption protects confidential messages and avoids the unauthorized access to information [44]. The systems used to detect and mitigate possible cyber risks include Intrusion Detection and Prevention Systems (IDPS) which track the network traffic [46]. The blockchain technology offers a ledger system that is decentralized and forbids tampering [47]. It boosts transparency and data integrity without having to control it centrally [45]. Smart contracts allow automating the process of digital agreement [48], and NFTs are unique digital assets that establish ownership in virtual world [49].

The interactive technologies allow users to experience the digital environment actively in visual, auditory, and haptic feedback. Somatosensory technology enables the user to make use of body movements and gestures to communicate instead of using conventional input devices [50]. Extended Reality (XR), the name of which incorporates virtual reality (VR), augmented reality (AR) and mixed reality (MR), is an experience in the form of immersion in digital reality as a combination of virtual and physical aspects [51,52]. Brain-Computer Interfaces (BCIs) can provide users with the option not only to interact with virtual beings (avatars or robots) by means of a thought but also to command the digital system via neural signals [53].

The development of digital twins, which are simulated and modeled representations of the real world, is assisted with the help of simulation and modeling technology. Digital twins enable organizations to model, manage, and optimize physical processes at virtual, the so-called real worlds [52,54]. This paper defines digital twins as real-time digital versions, which allow prediction, verification, and control throughout the lifecycle of a system [55]. As an example, BMW is modelling its electric vehicle production with NVIDIA Omniverse [56], and Anheuser-Busch InBev is applying digital twins to make its brewing and supply chains more efficient [57].

A clear and succinct overview of emerging metaverse technologies that have been identified in this study and their key benefits on integration into SCM practices has been depicted in Figure 4 These technologies have been grouped together and their contribution to the SCM practices was pinpointed. Figure 5 shows an example of a framework of how different emergent metaverse technologies play a crucial role in ensuring a resilient and sustainable supply chain.

4. Methodology

Fuzzy TOPSIS is an MCDM technique that integrates fuzzy sets into the traditional TOPSIS method to deal with uncertainties and imprecise data [58]. The fuzzy TOPSIS methodology selects an alternative based on proximity to the FPIS and distance from the FNIS [58,59]. According to [59], FPIS includes the optimal performance values for each alternative, whereas a FNIS includes the lowest performance values. Figure 6 illustrates the steps involved in fuzzy TOPSIS.

Step 1. Selection of alternatives and assessment criteria. Table 3 lists the alternatives and assessment criteria.

Step 2. Choosing fuzzy linguistic variables and fuzzy number system. This paper uses a triangular fuzzy number system to have a fuzzy rating scale for linguistic variables. Table 4 depicts a 5-point fuzzy rating scale for linguistic variables.

Step 3. Alternatives rating and criteria weightage by experts. Due to the scarcity of subject matter experts and industry practitioners in the realm of the metaverse, the data is collected from six distinguished experts for the fuzzy TOPSIS analysis. Their diverse expertise will provide a robust foundation for evaluating metaverse technologies in terms of resilience and sustainability. Table 5 depicts different linguistic variables assigned to alternatives and criteria by the six experts.

Step 4. Applying the fuzzy triangular number system to both the alternatives rating and criteria weightage. Table 6 depicts different fuzzy numbers assigned to alternatives and criteria as per Table 4.

Let there be a group of experts consisting of z number of individuals. The fuzzy rating of the z^th expert about alternativeA_m w.r.t criteriaC_n is denoted as ${\mathit{x}}_{\mathit{m}\mathit{n}}^{\mathit{z}}$ = (${\mathit{p}}_{\mathit{m}\mathit{n}}^{\mathit{z}},{\mathit{q}}_{\mathit{m}\mathit{n}}^{\mathit{z}},{\mathit{r}}_{\mathit{m}\mathit{n}}^{\mathit{z}}$) and weightage of criteria C_n is denoted as ${\mathit{y}}_{\mathit{n}}^{\mathit{z}}$ = (${\mathit{i}}_{\mathit{n}}^{\mathit{z}},{\mathit{j}}_{\mathit{n}}^{\mathit{z}},{\mathit{k}}_{\mathit{n}}^{\mathit{z}}$).

Step 5. Constructing a combined fuzzy decision matrix by calculating:

The aggregated fuzzy rating ${\mathit{x}}_{\mathit{m}\mathit{n}}$= (${\mathit{p}}_{\mathit{m}\mathit{n}}^{\mathit{z}},{\mathit{q}}_{\mathit{m}\mathit{n}}^{\mathit{z}},{\mathit{r}}_{\mathit{m}\mathit{n}}^{\mathit{z}}$) of ${\mathit{m}}^{\mathit{t}\mathit{h}}$ alternative w.r.t ${\mathit{n}}^{\mathit{t}\mathit{h}}$ criteria:

$p_{mn}=\underset{z}{\min }\left\{p_{mn}^z\right\},q_{mn}={\displaystyle \frac{1}{z}}\sum _{z=1}^z{q}_{mn}^z,r_{mn}=\underset{z}{\max }\left\{r_{mn}^z\right\}$

The aggregated fuzzy weightage ${\mathit{y}}_{\mathit{n}}$= (${\mathit{i}}_{\mathit{n}}^{\mathit{z}},{\mathit{j}}_{\mathit{n}}^{\mathit{z}},{\mathit{k}}_{\mathit{n}}^{\mathit{z}}$) for the criteria C_n:$i_n=\underset{z}{\min }\left\{i_n^z\right\},j_n={\displaystyle \frac{1}{z}}{\sum }_{z=1}^z{j}_n^z,k_n=\underset{z}{\max }\left\{k_n^z\right\}$

Table 7 Depicts a combined matrix for aggregated fuzzy rating and aggregated fuzzy weightage.

Step 6. Normalizing the combined fuzzy decision matrix. The matrix is represented as U = [u_mn], where,

The assessment criteria taken into consideration in this paper are both benefit criteria so the formula for benefit criteria is used to normalize the matrix. Table 8 depicts the normalized matrix.

Step 7. Computing the weighted normalized fuzzy decision matrix. The matrix is represented as W = w_mn, where w_mn = u_mn × y_n. Table 9 depicts the weighted normalized matrix.

Step 8. Determining FPIS (F⁺) and FNIS (F⁻). Table 10. Depicts the FPIS and FNIS.

Table 10 Depicts FPIS (F⁺) and FNIS (F⁻).

Table 11 and Table 12 depicts the distance of each alternative from the F⁺ and F⁻ and the associated d_m⁺ and d_m⁻ values respectively.

Step 10. Computing the Proximity coefficient (PC_m) for each alternative. Table 13 depicts the Proximity coefficient of each alternative.

Step 11. Ranking the alternatives, where the alternative having the highest proximity coefficient(PC_m) value is considered to be the optimal choice. Table 13 depicts the ranking of alternatives.

5. Results and Discussions

Using fuzzy TOPSIS to rank metaverse technologies allows for effective handling of the uncertainty or ambiguity inherent in linguistic evaluations [60]. After TOPSIS analysis the Proximity coefficient ${(\mathit{P}\mathit{C}}_{\mathit{m}})$for each alternative was found. The technology with the highest Proximity coefficient${(\mathit{P}\mathit{C}}_{\mathit{m}})$ was deemed the best option. Table 15 depicts the ranking of metaverse technologies for a resilient and sustainable supply chain network.

Figure 7 depicts the Proximity coefficients graphically for each of the evaluated technologies. Figure 8 depicts key benefits offered by metaverse technologies to various supply chain stakeholders thereby benefiting the entire system.

graph for various metaverse technologies.

Therefore, the adoption of metaverse technologies into the supply chain practices impacts personal stakeholders in the sense that it makes them more innovative, efficient, and productive [61]. This will subsequently help the whole supply chain offer the best value to its customers besides responding to challenges and evolving market needs efficiently.

6. Conclusions

New metaverse technologies are bound to have massive possibilities in making supply chains more resilient and sustainable worldwide. This paper has critically examined some of the metaverse technologies with the MCDM approach, in particular such as the fuzzy TOPSIS methodology, to provide an estimate of their role in creating a resilient and sustainable supply chain network. The study found that the most powerful technology, in terms of digital twins, is simulation and modelling technology, which can be used to improve the resilience and sustainability of global supply chains. Digital twins are highly effective in responding to disruptions and ensuring that processes are optimized, prediction of component failures, and real-time monitoring is done, which makes them very effective in reacting to disruptions and minimizing wastage. Interactive technologies, though important, were considered to be last among the direct contribution to the resilient and sustainable supply chain network. The results of this research indicate that the use of simulation and modelling technology (digital twins) should be highlighted in the list of the factors that companies wishing to futurize their supply chains should pay attention to. These implications enable the companies to manage barriers, reduce their environmental impact, and project a stronger chain network in an uncertain international market.